Ekennis Software SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 07 Mar 2022
- Face value
- ₹10 per share
- Issue price
- ₹72 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹2.88 Cr
- Market cap at offer price
- ₹10.08 Cr
- Promoter holding
- 100.00% → 71.42% pre-issue → post-issue
- ISIN
- INE0KCM01010
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- 2 nd Floor, Concord Anthuriams, Neeladri Road No.49, 50, 51, Dodathogur Vill, Electronic City, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 22,400 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹72
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,15,200 |
| S-HNI (min) | 2 | 3,200 | ₹2,30,400 |
| S-HNI (max) | 8 | 12,800 | ₹9,21,600 |
| B-HNI (min) | 9 | 14,400 | ₹10,36,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 189.83 | — |
| P/E (×) | 0.38 | — |
| Market cap | — | ₹10.08 Cr |
Key performance indicators
- Return on net worth
- 77.48%
- ROCE
- 173.31%
- Debt / equity
- 0.11
- PAT margin
- 20.37%
- NAV per share
- ₹245.02
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Ekennis Software SME
Ekennis Software Service Limited, incorporated on February 28, 2019, operates as a software and IT services company diversified across multiple business segments. The company was originally incorporated as a One Person Company and converted to a public limited company in January 2022. It leverages domain expertise, processes, and infrastructure to deliver software IT solutions, consulting services, IT product/software development, software training, Enterprise Resource Planning (ERP) solutions, Learning Management Solutions (LMS), 3D printing, digital printing, and packaging design management consultancy services. The company generates revenue primarily from a single major customer (95%+ of revenue) and has expanded into the 3D printing vertical since 2021. For the period ended January 15, 2022, total revenue was ₹367.18 Lakhs with profit after tax of ₹70.20 Lakhs.
Company Analysis
from RHPEkennis Software Service Limited provides software IT solutions, consulting services, ERP solutions, learning management solutions, 3D printing, digital printing, and packaging design management consultancy across IT and printing industries.
Ekennis Software Service Limited, incorporated on February 28, 2019, operates as a software and IT services company diversified across multiple business segments. The company was originally incorporated as a One Person Company and converted to a public limited company in January 2022. It leverages domain expertise, processes, and infrastructure to deliver software IT solutions, consulting services, IT product/software development, software training, Enterprise Resource Planning (ERP) solutions, Learning Management Solutions (LMS), 3D printing, digital printing, and packaging design management consultancy services. The company generates revenue primarily from a single major customer (95%+ of revenue) and has expanded into the 3D printing vertical since 2021. For the period ended January 15, 2022, total revenue was ₹367.18 Lakhs with profit after tax of ₹70.20 Lakhs.
Objects of the Issue
- To purchase Plant and Machinery ₹31.10 Lakhs p.19
- Working Capital Requirements ₹113.00 Lakhs p.19
- General Corporate Purpose ₹64.40 Lakhs p.19
- Purchase of Plant and Machinery ₹31.10 Lakhs p.64
- Funding working capital requirements ₹113.00 Lakhs p.66
- General corporate purposes ₹64.40 Lakhs p.67
- Not specified in this portion of the document
Issue Structure
- Total Issue
- ₹288.00 Lakhs (4,00,000 Equity Shares of ₹10/- face value each at ₹72/- per share)
- Fresh Issue
- ₹288.00 Lakhs (4,00,000 Equity Shares)
- Offer for Sale
- N.A.
- Price Band
- ₹72/- per Equity Share (Fixed Price)
- Lot Size
- 1,600 Equity Shares and in multiples thereof
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue through delivery of software IT solutions and consulting services, IT product/software development and software training, Enterprise Resource Planning (ERP) solutions, Learning Management Solutions (LMS), 3D printing services, digital printing, and packaging design management consultancy. The company operates on an order-to-order basis with customers, typically not entering into long-term supply contracts but maintaining continuing business relationships with key clients.
Business Segments
SWOT Analysis
- • No material litigation against company(p.20)
- • Diversified business portfolio across IT and printing sectors(p.19)
- • Strong profitability with positive cash generation(p.28)
- • Low financial leverage and minimal debt burden(p.19)
- • Experienced promoter with industry recognition and well-trained workforce(p.93)
- • Comprehensive integrated service offerings providing one-stop business solutions(p.93)
- • Proprietary e-learning and mobile learning solutions with advanced LMS platform(p.93)
- • Proprietary EATS staffing software for streamlined recruitment and hiring automation(p.93)
- • Modern digital printing technology with latest machinery and GS1-approved products(p.94)
- • Cost advantage positioning relative to large competitors in IT services(p.95)
- • Skilled and organized management team enabling successful growth implementation(p.109)
- • Established trademark with registered brand identity(p.109)
- • Diversified service offerings across multiple business segments(p.119)
- • Customer-centric marketing approach with regular market engagement(p.109)
- • All-women board of directors demonstrating governance diversity(p.122)
- • Strong profitability growth trajectory(p.177)
- • Improved liquidity and reduced leverage(p.177)
- • Strong current ratio indicating short-term financial health(p.177)
- • Positive cash generation from operations(p.178)
- • Clean regulatory and litigation history(p.181)
- • Extreme revenue concentration with single customer dependency(p.25)
- • Key trademark and brand not owned by company(p.27)
- • Unregistered brand name 'myperfectpack' creates IP vulnerability(p.27)
- • Heavy reliance on single promoter for business operations(p.26)
- • Leased registered office without long-term security(p.30)
- • No long-term contracts with customers; work order basis operations(p.33)
- • Limited operating and financial history(p.26)
- • Compliance lapses and delayed statutory filings(p.31)
- • High concentration of ownership with single promoter holding 99.99% of pre-issue shares(p.58)
- • Very young company with only 3 years of operational history since incorporation(p.92)
- • Significant working capital requirements with net cash from operations declining year-on-year(p.46)
- • Heavy dependence on single customer for revenue generation(p.172)
- • Declining profitability trend from 2020 to 2021(p.176)
- • Small employee base of only 54 people limiting operational capacity(p.109)
- • No established dividend policy or shareholder returns(p.139)
- • Recent conversion from private to public company with limited public market experience(p.119)
- • Extreme customer concentration risk(p.180)
- • High financial costs from short-term borrowings(p.177)
- • Limited operational history(p.188)
- • Expansion into 3D printing and digital printing verticals(p.32)
- • Growth in IT and software services industry(p.19)
- • Capacity expansion through net proceeds deployment(p.19)
- • Expansion of printing facilities to increase installed capacity and revenue from operations(p.95)
- • Strategic focus on high-growth industry verticals including Education, Food, Entertainment, Healthcare, Manufacturing(p.95)
- • Strong tailwinds in Indian IT and digital printing industries with robust projected growth(p.85)
- • Digital printing market growth in India at 30% annual rate, significantly outpacing traditional printing(p.90)
- • India positioned as third-largest consumer economy with consumption expected to triple to US$4 trillion by 2025(p.79)
- • Expansion into new geographic markets through branch offices(p.120)
- • Growth potential in Digital Printing, 3D Printing and Packaging solutions(p.119)
- • Participation in trade fairs and exhibitions for market recognition and relationship building(p.109)
- • Expansion of ERP and Learning Management Solutions portfolio(p.119)
- • Leveraging startup recognition and government support programs(p.120)
- • Market expansion and increased market share capture(p.180)
- • Entry into new geographic and market segments(p.180)
- • Business growth linked to volume expansion(p.179)
- • Intense competition from organized and unorganized players(p.29)
- • Risk of customer loss and demand fluctuations(p.23)
- • Long and unpredictable sales cycles affecting revenue(p.24)
- • COVID-19 pandemic continuing uncertainty(p.24)
- • Rapid technological obsolescence and innovation requirements(p.24)
- • Cyber-security and data breach vulnerabilities(p.32)
- • Power supply interruptions affecting operations(p.31)
- • Labour-intensive operations vulnerable to work stoppages(p.30)
- • Changes in tax laws and regulatory environment(p.41)
- • Global economic and political instability(p.42)
- • Equipment failures and manufacturing disruptions(p.28)
- • Intense competition from established IT service providers with significantly larger scale and resources(p.95)
- • Rising digital economy reducing demand for traditional printed materials and packaging(p.88)
- • High capital investment requirements for digital printing machinery limiting accessibility for small players(p.88)
- • Volatility in raw material prices impacting printing business margins and operations(p.91)
- • Global economic slowdown and geopolitical uncertainties affecting IT spending and demand(p.76)
- • Rapid technological changes requiring continuous innovation(p.172)
- • Intense competition in IT services and software development industry(p.172)
- • Economic sensitivity and cyclicality affecting client budgets(p.172)
- • Impact of COVID-19 on business operations and revenue(p.176)
- • Regulatory compliance requirements in multiple jurisdictions(p.109)
- • Exposure to interest rate risk affecting debt obligations(p.179)
- • Vulnerability to inflation pressure on margins(p.179)
- • Customer credit risk from non-payment(p.179)
- • Intense competition from established and unorganized players(p.180)
- • Regulatory compliance burden including labour inspections(p.181)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ms. Manisha Sharma | Promoter | 99.99% | — |
| Mr. Aatmik Sharma | Promoter Group | Negligible | — |
| Mr. Harsh Wardhan Sharma | Promoter Group | Negligible | — |
| Ms. Megha | Promoter Group | Negligible | — |
| Ms. Pratima Sharma | Promoter Group | Negligible | — |
| Mr. Rithik Sharma | Promoter Group | Negligible | — |
| Mr. Vikas Sharma | Promoter Group | Negligible | — |
| Ms. Manisha Sharma | Promoter | 99.99% | 71.42% |
| Mr. Aatmik Sharma | Promoter Group | Negligible | Negligible |
| Mr. Harsh Wardhan Sharma | Promoter Group | Negligible | Negligible |
| Ms. Megha | Promoter Group | Negligible | Negligible |
| Ms. Pratima Sharma | Promoter Group | Negligible | Negligible |
| Mr. Rithik Sharma | Promoter Group | Negligible | Negligible |
| Mr. Vikas Sharma | Promoter Group | Negligible | Negligible |
| Ms. Manisha Sharma | Promoter | 99.99% | — |
| Manisha Sharma | Promoter | — | — |
| Manisha Sharma | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.